Had economic theorists rested content with using the microeconomics of the Neoclassical Synthesis strictly as a conceptual device employed in abstract reasoning, it might have done little damage. However, as I have already suggested, this type of theory cried out for application, which in practice was nearly always misapplication. The idealized conditions required for theoretical general-equilibrium efficiency could not possibly obtain in the real world, yet the economists readily endorsed government measures aimed at coercively pounding the real world into conformity with these impossible theoretical conditions. Closely examined, such efforts represented a form of madness.
Economia
- Escola Austríaca
"Among the contending schools of economic science there is one which does at least theoretically recommend humility, listening, really listening, scientifically speaking – not certainly the Marxism I started with, nor the Harvard Samuelsonian I was...
- Grande Depressão
Quotation of the Day… by Don Boudreaux on July 13, 2013 in Great Depression, Hubris and humility, Intervention … is from page 461 of economic historian Stanley Lebergott’s comprehensive, eloquent, and wise 1984 volume, The Americans:...
- O Estado De Bem-estar E Inovação
Cant We All Be More Like Scandinavians? Asymmetric Growth and Institutions in an Interdependent World Daron Acemoglu MIT James A. Robinson Harvard Thierry Verdier Paris School of Economics September 2012. Abstract Because of their more limited...
- A Grande Estagnação Que Nunca Apareceu
Quotation of the Day… by Don Boudreaux on September 1, 2012 in Myths and Fallacies, State of Macro, Stimulus … is from pages 275-276 of John H. Williams’s May 1948 American Economic Review essay “An Appraisal of Keynesian Economics“ (ellipses...
- Modelos Macroeconômicos Em Debate
Robert Higgs explica: “The Current Models Have Nothing to Say” By Robert Higgs | Thursday March 22, 2012 In the 2011 annual report of the Federal Reserve Bank of Dallas’s Globalization and Monetary Policy Institute, we find a report on the 10th...
Economia
Abuso da sintese neoclássica
Quotation of the Day…
… is from page 161 of Robert Higgs’s 2012 book Delusions of Power (original emphasis; link added); here, Bob is writing about policy-making in the U.S. during the reign of LBJ:
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- Escola Austríaca
"Among the contending schools of economic science there is one which does at least theoretically recommend humility, listening, really listening, scientifically speaking – not certainly the Marxism I started with, nor the Harvard Samuelsonian I was...
- Grande Depressão
Quotation of the Day… by Don Boudreaux on July 13, 2013 in Great Depression, Hubris and humility, Intervention … is from page 461 of economic historian Stanley Lebergott’s comprehensive, eloquent, and wise 1984 volume, The Americans:...
- O Estado De Bem-estar E Inovação
Cant We All Be More Like Scandinavians? Asymmetric Growth and Institutions in an Interdependent World Daron Acemoglu MIT James A. Robinson Harvard Thierry Verdier Paris School of Economics September 2012. Abstract Because of their more limited...
- A Grande Estagnação Que Nunca Apareceu
Quotation of the Day… by Don Boudreaux on September 1, 2012 in Myths and Fallacies, State of Macro, Stimulus … is from pages 275-276 of John H. Williams’s May 1948 American Economic Review essay “An Appraisal of Keynesian Economics“ (ellipses...
- Modelos Macroeconômicos Em Debate
Robert Higgs explica: “The Current Models Have Nothing to Say” By Robert Higgs | Thursday March 22, 2012 In the 2011 annual report of the Federal Reserve Bank of Dallas’s Globalization and Monetary Policy Institute, we find a report on the 10th...